Latest Rail News

05.11.13

Network Rail supplier bought by Morson Group

Vital Services Group (VSG), the largest supplier of labour to Network Rail, has gone into administration. Morson Group has bought the assets and contracts of the seven companies affected, and staff will transfer.

Around 2,200 workers will be affected; 200 directly employed in Manchester and 2,000 in the wider supply chain.

VSG provides permanent and temporary engineering and maintenance staff for Network Rail and London Underground. The group has suffered “cash flow pressures” and has appointed Deloitte to manage the transfer.

The deal involves Vital Services Group Limited, Vital Rail Limited, Ematics Limited, Vital Resources Limited, Quality Recruitment Limited, Vital Consulting UK Limited and Vital Power (UK) Limited.

Vital Skills Training Limited, Sicura Systems Limited and Vital Technology Limited are not affected.

Dan Smith, joint administrator and partner in Deloitte's Reorganisation Services practice, said: “The group has suffered recently from cash flow pressures. The sale of the trade and assets of these companies minimises disruption in the continued delivery of these essential services to the rail industry and secures jobs.”

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